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koala_bear

Peston : Lloyds And Current Sls And Cgs

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http://www.bbc.co.uk...n_recovery.html

Update 10:11: For those who care about these things, I am told that of the outstanding £83bn owed to taxpayers, around £40bn is money borrowed from the Bank of England via the Special Liquidity Scheme - which has to be repaid in 2012.

And most of the rest is in the form of debt issued by Lloyds and guaranteed by the Treasury via the Credit Guarantee Scheme - which also has to be refinanced over a similar time scale.

At a time when wholesale funding markets are nowhere near as deep or liquid as they were before the Crunch of August 2007, Lloyds is not planning to replace all this public-sector support with commercial debt.

It says that rather than finding new lenders, it plans to "right size the balance sheet" (horrible banker-speak for shrinking its balance sheet), so that it has fewer assets (loans and investments) that need funding.

Which, as if you needed telling, means that there will continue to be constraints on Lloyds ability to provide new loans to households and businesses.

According to BoE estimates:

£65bn of SLS was repaid in 2010

£2bn of CGS was repaid in 2010

£100bn of SLS will be repaid in 2011

£58bn of CGS will be repaid in 2011

£10bn of SLS will be repaid in 2012 ( inc. final repayments)

£55bn of CGS will be repaid in 2012

£60bn of CGS will be repaid after 2012 ( inc. final repayments)

Any thoughts on what this is going to do to the lending activities of the UK's biggest mortgage bank?

Edited by koala_bear

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http://www.bbc.co.uk/blogs/thereporters/robertpeston/2011/02/hl_lloyds_-_blip_in_recovery.html

According to BoE estimates:

£65bn of SLS was repaid in 2010

£2bn of CGS was repaid in 2010

£100bn of SLS will be repaid in 2011

£58bn of CGS will be repaid in 2011

£10bn of SLS will be repaid in 2012 ( inc. final repayments)

£55bn of CGS will be repaid in 2012

£60bn of CGS will be repaid after 2012 ( inc. final repayments)

Any thoughts on what this is going to do to the lending activities of the UK's biggest mortgage bank?

Doesn't their ability to lend depend on their capital ratios? How does £300bn of "assets" in a "Bad bank" affect those?

Lloyds Banking (running-off £300bn of non-core assets, according to UBS)

http://ftalphaville.ft.com/blog/2011/01/10/453391/next-up-for-barclays-a-bad-bank/

Is that like a big carpet they can hide their dirt under so their capital ratios look OK? If so, what's to stop them sweeping more under it, so they can keep lending?

£2.2bn profit in 2010 and £300bn allegedly in a "bad bank" - what could go wrong?

RBS £1bn loss in 2010 and £280bn in the APS? ....

Edited by Redhat Sly

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There's a false assumption that no other major bank will go bust (with no further losses coming down to Lloyds)

If, say, Bank of America goes bust, then Lloyds will need more bail-outs.

That's the big omission hidden behind the figures.

If several american banks go bust, you can kiss either Lloyds or the pound goodbye ( as well as the dollar).

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1.4 Trillion Pounds has been given to the rich/shareholders/executives banks to stop them losing their wealth-status!

Where's the rest of it?

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It seems that the billions from the SLS and CGS are being paid back much more easily than most of us expected. The BoE said something similar in a report, the Credit Conditions Survey I think, a couple of months ago. I'd been relying on this funding gap to keep lending reined in for years to come :ph34r:

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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